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What Drives Public Debt Growth? A Focus on Natural Resources, Sustainability and Development

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Listed:
  • Mubariz Mammadli

    (Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan,)

  • Elkhan Richard Sadik-Zada

    (Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan,)

  • Andrea Gatto

    (Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan,)

  • Rana Huseynova

    (Azerbaijan State University of Economics (UNEC), Baku, Azerbaijan,)

Abstract

Public debt is a notable measure of economic and financial sustainability which encountered policy and scholarly interest in the international development ambients. This paper investigates the major drivers of public debt growth in 184 countries. The underlying cross-country survey is conducted on the basis of the improved compilation of datasets on the central government debt for 2013. The study finds that oil abundance, economic growth rate, the share of mineral rent in the total revenue, interest rate payments for foreign borrowings, and being a developing country have a statistically significant impact on the growth of the public debt. In contrast, defence spending, unemployment rate, and inflation rate do not have a statistically significant positive impact on the public debt rate.

Suggested Citation

  • Mubariz Mammadli & Elkhan Richard Sadik-Zada & Andrea Gatto & Rana Huseynova, 2021. "What Drives Public Debt Growth? A Focus on Natural Resources, Sustainability and Development," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 614-621.
    • Handle: RePEc:eco:journ2:2021-05-71
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    References listed on IDEAS

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    Cited by:

    1. Natavan Namazova, 2023. "Changing the Level of Education and Career Choice Depending on the Socioeconomic Status of the Family: Evidence from Azerbaijan," Sustainability, MDPI, vol. 15(22), pages 1-13, November.
    2. Zivar Zeynalova & Natavan Namazova, 2022. "Revealing Consumer Behavior toward Green Consumption," Sustainability, MDPI, vol. 14(10), pages 1-20, May.
    3. Mubariz Mammadli, 2022. "Environmentally Responsible Business Approaches in Azerbaijan," Sustainability, MDPI, vol. 14(10), pages 1-25, May.
    4. Sugra Humbatova, 2023. "The Impact of Oil Prices on State Budget Income and Expenses: Case of Azerbaijan," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 189-212, January.
    5. Yahaira Lisbeth Moreno Brito & Jue Wang & Hak-Seon Kim, 2023. "Green Trust: How Consumer Demographics Moderate Environmental Commitment in Latin America," Sustainability, MDPI, vol. 15(21), pages 1-20, October.

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    More about this item

    Keywords

    Public Debt; Natural Resources; Sustainability; Oil Rent; Mineral Rent; Defence Spending; Developing Countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • F3 - International Economics - - International Finance

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